Published on February 21st, 2014 | by Chris Snell - Rental Success0
What is a Lease? Landlords and Tenants … Tenancy Responsibilities and Entitlements
What is a lease?
A lease is more technically referred to as a residential tenancy agreement. It is a legal contract between two or more parties namely the tenant and the landlord. It is a written document and signed by all parties.
What does a lease do?
A lease outlines: the amount of rent and how it is to be paid the length and type of tenancy the amount of bond required other conditions and rules. A lease establishes the agreement between the landlord and the tenant and imposes obligations and entitlements upon both parties.
Fixed term – a fixed-term agreement is for a set period of time, usually six or 12 months. After a fixed-term lease expires, a tenant can sign a new fixed-term lease or roll automatically onto a periodic lease.
Periodic lease – a tenant will usually roll over to a periodic lease (commonly called a ‘month by month’ lease) when their fixed-term lease ends. Normally, when a lease becomes periodic, the tenant does not sign a new lease, but must still follow the rules set out in the original agreement. A tenant on a periodic lease does not have to sign a new fixed-term lease, although if they do not they risk the security of their tenancy. The original agreements between the parties remain unchanged and carry on in continuation … the only thing suspended is the fixed term that was originally agree upon.
One of the problems with poorly written tenancy agreements is that confusion may become present during the tenancy because things lack clarity. It is important that a landlord is confident about the tenants understanding of the lease agreement. It is also the duty of the landlord to ensure a good understanding of the lease agreement being prepared for signing.